Recession

Recession occurs due to reduction in GDP (Gross Domestic Product). It affects international countries and domestic’s countries which ultimately results in job cuts, cost minimization, decrease in employees facilities etc.Normally India is an agricultural country so it has not affected much as compared to other countries. If a country GDP increases then it results in higher efficiency, productivity which leads to end of recession. So government should take some important steps to increase their countries GDP rate. Due to recession many employees has lost their job due to which unemployment is rising day by day. The questions arises to them are

• Who will give him the job?
• How can he pay home loan?
• How should he bear his household expenses?
• How should he pay his Insurance Premium?

Because of all these problems most of the unemployed people has joined call centre jobs, low paying jobs, data entry jobs etc to fulfill their requirements.

Effects Of Recessions:-

1) Recruitment Freezes :- Due to recession many companies has freezes the recruitment process due to which job opportunities is decreasing day by day.

2) Generates Frustrations :- Recessions has created a lot of frustration in employees mind such as lack of job security, reduction in salaries, no increment etc.

3) Extended working hours :- Many companies have extended their working hours from 8 hours to 10 hours a day. Also bosses have told to their employees to show performance in their work or else leave the job.

4) Decrease in company’s sales figure :- Due to recession many companies are unable to achieve their set target which ultimately affects their decrease in sales figure.

5) Job Cuts :- Many companies are removing employees not only in domestic but also in international countries due to which there is tremendous rise in unemployment.

6) Stock market:- Recession has also affected stock market which results in less returns, decrease in shares value etc